Retaining experienced pilots in deficit market conditions

2013 04 29

Recently the deficit of pilots has been the subject of numerous discussions. With airlines being forced to park some of their newly delivered aircraft and lower their development ambitions, many industry players are faced with issue of migrating professional aviators. The situation on the highly competitive market shows no signs of improving any time soon, so it is absolutely necessary to start thinking about the measures which could potentially be taken in order to assist airlines in retaining their experienced workforce.

Today both airlines and experienced pilots clearly realize the perspectives of the pilot deficit, particularly in such markets as China or Russia. China is anticipating a 70.000+ pilot demand, while Russia is still closed for foreign pilots. In both countries airlines are forced to harshly compete for experienced pilots, particularly Captains.

‘Asian carriers are continuously surfing the world for experienced pilots. During a specialized Job Fair, held in 2012 in the USA, the Chinese carriers alone attracted over 500 American pilots. At the same time, what we see in such ‘closed’ markets like Russia, is that airlines are enticing pilots from each other. That is why it is vital for an air company to develop and maintain competitive pilot retaining programs,’ comments Skaiste Knyzaite, the CEO of AviationCV.com.

Financial incentives remain one of the most effective motivation systems. Monetary benefits are particularly well-developed in Asia. Some local carriers provide foreign pilots with a $6,000-12,000 bonus after 12 months of successful performance, $20,000 – after 24 months, $50,000 – after 36 months. Additionally, some airlines pay their pilots $12,000 extra for excellent compliance with safety regulations whilst some pilots may receive up to $500 for fuel-efficient performance.

‘There are numerous bonus programs, which motivate pilots to perform on the highest level and stay loyal to the company. But that is not the only measure. Those carriers, which employ foreign pilots, maintain family-friendly programs, which include accommodation and transport allowance for both pilots and their relatives. Moreover, some airlines cover pilots’ Type Rating and other training fees. Then there are always additional social packages, accommodation and other allowances. But while airlines are keen to retain pilots, it is important to maintain balance and not to spoil them too much,’ shares Skaiste Knyzaite.

Every pilot retaining system must have not only motivating elements, but also a clear and strict quality supervision system aimed at monitoring and improving performance. Some airlines have already implemented certain sanction systems under which pilots are fined for low-performance and violation of safety requirements. Asian carriers, which offer the highest wages, are known for maintaining probably the strictest requirements of all. Should a Captain enter an airport facility without the peaked cap on his head, he is immediately reported to the carrier and, as a result, is likely to be reprehended and fined. Depending on the particular offence, the applicable fines may range from several thousand USD or 100% of a one month’s salary to as much as the total amount of receivable annual bonuses.

‘Unfortunately, it is estimated that approx. 40% of all global carriers do not have any long-term HR-strategy. But in the global market, where airlines are competing with each other for experienced and qualified workforce it is essential to develop such a long-term plan. Carriers must put effort in retaining current professionals and attracting new talents in the future. However, not every company has the recourses to develop and maintain a comprehensive HR-strategy for five or ten years, as the market is rapidly changing and the migration of workforce across the globe is accelerating. Such carriers would certainly find it helpful to cooperate with specialized HR-agencies, orientated towards international aviation. They are very well equipped to locate, implement and develop the most successful HR-practices in the industry,’ concluded Skaiste Knyzaite.